- €8.4 billion from the EIB and €1.5 billion from the EIF, its SME-focused subsidiary
- 70% of the EIB’s investment volumes for climate and the environment, 31% for innovation
- Targeted investments in strategic industries, reinforcing European sovereignty
The EIB Group had a very busy year in France, directly or indirectly providing nearly €10 billion in long-term financing to the private sector and regional authorities: €8.4 billion from the European Investment Bank (EIB) and €1.5 billion from the European Investment Fund (EIF), which focuses on financing small and medium-sized enterprises (SMEs).
In EU terms, France was the country that received the second-highest amount of EIB Group financing in 2022 and was the country in which the EIF did the most business.
Loans used to mitigate climate change and adapt to its damaging effects, and provide support for innovation and to sectors helping to reinforce the European Union's sovereignty and strategic autonomy, were the main themes of EU public banking activity in France in 2022.
“The EIB Group’s results in France last year reflect a very strong trend. They confirm our role as a driver of the energy and green transition, attracting more private investment to support Europe’s strategic priorities. Our lending in 2022, to key segments such as the cloud, semiconductors, low-carbon hydrogen and electric batteries will also help increase the continent’s industrial autonomy. Investment is the cornerstone of the European Union's future sovereignty,” said EIB Vice-President Ambroise Fayolle.
“With nearly €1.5 billion invested in small businesses last year, France is — for the second year running — the European country in which the EIF’s business was strongest. Through its banking guarantees and its contributions to a number of investment funds placing a heavy emphasis on green technologies and the ecological transition, the EIF is a vital cog in the development of greener, more competitive and more digital small businesses,” added EIF Chief Executive Marjut Falkstedt.
France, number one beneficiary of EIB financing for climate and the environment
With 70% of its loan issuance allocated to climate and environmental action, France was the number one beneficiary of this type of financing from the EIB in 2022. This resulted in total investment of €5.9 billion in renewable energy, green transport and energy efficiency.
Flagship projects financing climate action in 2022 included the first two operations made as part of the new European investment support programme, InvestEU, which aims to mobilise more than €372 billion of public and private financing across the continent by 2027: a €315 million loan to automobile parts manufacturer Faurecia for R&D in hydrogen storage and transport innovation; a €130 million loan to equipment rental firm Loxam for electrification of its construction machinery. In the field of renewable energy, the EIB financed the first three pilot schemes for floating windfarms in the Mediterranean, for a total of €210 million. The EIB also provided Enedis with a loan of €800 million for 12 000 km of new renewable energy lines and charging points for electric vehicles.
Increased support for all innovation
Innovation is another essential part of activity in France. It usually has a significant climate impact. Investment in this area ran to €2.7 billion last year. In agriculture, the EIB provided €40 million of financing to seed company Florimond Desprez to develop new crop varieties resistant to climate change. In industry, it provided €85 million of financing to Emotors for its R&D in electric motors and their future production at its new plant in Trémery, Moselle, which will supply automobile group Stellantis in particular.
The EIB continued to invest in healthcare and life sciences with the financing of four biotechs for a total of €165 million in 2022: Inventiva (non-alcoholic steatohepatitis), Medincell (long-acting injectable medicines), Gensight Biologics (retinal diseases) and Cellectis (gene and cell therapies).
In digital infrastructure, it granted a loan of €300 million to iliad to roll out its fibre networks, taking the financing allocated to the operator since 2009 to more than €1.4 billion.
Reinforcing European sovereignty
In 2022, the EIB’s targeted investments in industry and technology helped reinforce Europe’s strategic autonomy in sectors for which Europe is overly dependent on foreign supply. For example, it provided €49 million of financing to the Verkor innovation centre in Grenoble. Founded in 2020, this company plans to open France’s third gigafactory for the mass production of car battery cells in Dunkirk in 2024. For the first time last year, the EIB also provided €200 million of financing to OVHcloud in a key area for digital sovereignty in the European Union. In addition, it supported the development of the EU semiconductor industry with a €600 million loan to the French-Italian group STMicroelectronics.
Supporting the public sector transition
As a partner to regional authorities, the EIB allocated €3.6 billion for investment in greener public infrastructure in 2022. The EIB will contribute €800 million to the financing of the Seine-Nord Europe Canal. Stretching over 107 km, by 2030 it will connect France's river network to 20 000 km of European waterways. This is a very environmentally-friendly solution for the transport of goods, as its CO2 emissions are up to five times lower than those of road transport. The EIB also supported Sytral Mobilités, a local municipality association which manages public transport in Lyon and in the Rhône department: €750 million investment in new tram and bus lines and upgrade of rolling stock.
In 2022, the EIB also signed a new intermediated finance arrangement worth €500 million with the Caisse des Dépôts Group for social housing providers to carry out heating and insulation work. This is the second tranche of an operation totalling €1 billion. The first tranche was signed in 2021.
In education, the EIB will provide a €70 million loan to renovate the Ecole Polytechnique campus and its main research laboratory in Palaiseau (Essonne). In Strasbourg, the EIB will lend €95 million to finance the renovation of some 20 schools, the creation of two new education groups, and a programme to increase the energy efficiency of 1 700 public buildings. The EIB regularly invests in public medical facilities such as the new hospital in Nantes (€400 million), which will be built on the Île de Nantes and is due to open in 2026.
€1.5 billion of EIF financing for small businesses
The EIF, a subsidiary of the EIB Group, supports small businesses via bank guarantees and investment funds. Last year it invested €1.5 billion in France, 15.6% of its total financing volume. Bank guarantee operations amounted to €624 million. Investments in 26 funds totalled €831 million.
For instance, the EIF indirectly supported Europe’s leading medical visit and remote consultation booking service Doctolib (€500 million of funds raised in March 2022) through its backing of the Eurazeo investment fund. It also invested €75 million in Eiffel Transition Infrastructure, a pioneering finance solution providing bridging capital for renewable energy infrastructure assets in Europe. In the transport sector, which alone accounts for 31% of greenhouse gas emissions in France, the EIF also allocated €40 million to the Shift4good impact fund for its investments in startups working on all forms of sustainable transport.
Including all activities, the EIB Group directly or indirectly supported almost 47 000 SMEs in France in 2022, helping to safeguard 520 000 jobs.
About the EIF
The European Investment Fund (EIF) is part of the EIB Group. Its main goal is to help small businesses access financing. The EIF designs and deploys venture capital, growth capital, guarantee and microfinance instruments specifically targeted at this market segment. Its activities foster EU objectives promoting innovation, research and development, enterprise creation, growth, and job creation.
